Monthly housing costs in the U.S. are rising faster than inflation, putting increasing financial pressure on both homeowners and renters, according to new data from the Census Bureau.
In 2024, the median monthly cost of owning a home—including mortgage payments, property taxes, insurance, and fees—climbed to $2,035 (adjusted for inflation), up from $1,960 the year prior. Buyers entering the market this year faced even steeper costs, with the median mortgage reaching $2,225—20% higher than three years ago, despite some declines in home prices, the Washington Post reports.
Compared to 2019, monthly homeownership costs have surged 26%, rising from just over $1,600, according to Realtor.com.
Renters aren’t escaping the crunch either. Median rent—including utilities—increased 2.7% year over year to $1,487, also adjusted for inflation.
The Census Bureau’s latest American Community Survey highlights a growing disconnect between stagnant inflation-adjusted incomes and rising housing costs. The ongoing housing affordability crisis is being fueled by a combination of high mortgage rates—still elevated despite recent rate cuts by the Federal Reserve—and limited housing supply.
Additional costs like rising property insurance premiums and homeowners association (HOA) fees are further straining budgets. In 2024, the median annual cost of property insurance rose 5.3%, with HOA fees especially common in states like Florida, Nevada, and Arizona.
Income growth hasn’t kept pace. After adjusting for inflation, median household income remains roughly flat compared to 2019.
Some areas have been hit harder than others. Florida saw the sharpest year-over-year rise in homeowner costs, jumping 8% to a median of $2,168 per month. Other states in the South and West also recorded significant increases. Hawaii, California, and Washington, D.C., remain the most expensive markets, with monthly homeownership costs nearing $3,000.